Surcharges on Late Telephone Bill Payments Included in Service Tax Calculation Per Section 67(b) of Finance Act, 1994.
The circular addresses the inclusion of surcharges in the calculation of Service Tax on telephone bills. It clarifies that, according to Section 67(b) of the Finance Act, 1994, the taxable value for telephone services should include the gross total amount charged to subscribers, which encompasses any surcharges for delayed payments. Consequently, Service Tax at a rate of 5% must be applied to the total bill amount, including the surcharge, if the payment is made after the due date. This ensures that the surcharge is part of the taxable service value for Service Tax purposes.
Full Summary is availble for active users!
Note: It is a system-generated summary and is for quick
reference only.